Mumbai, March 4: The ongoing conflict between Iran, Israel, and the United States in West Asia has led investors to seek safe-haven assets like gold and silver, resulting in a significant rise in their prices amid a declining stock market. In the early trading session on Wednesday, gold prices on the Multi Commodity Exchange (MCX) surged by over 1%, while silver saw an increase of more than 2%.
Gold futures for April delivery rose by 1.44%, or ₹2,324, reaching ₹1,63,432 per 10 grams. Meanwhile, silver futures for May delivery climbed by 2.65%, or ₹7,021, to ₹2,72,339 per kilogram.
However, in the previous session, both gold and silver experienced substantial declines. April gold futures fell by 3%, closing at ₹1,61,108 per 10 grams, while May silver futures dropped nearly 5%, ending at ₹2,65,318 per kilogram. This decline was attributed to a strengthening dollar index and a rise in the yield of U.S. 10-year bonds.
The dollar index reached a multi-month high of 99.33, while the yield on U.S. 10-year bonds surpassed 4%. Investors are concerned that rising energy prices could lead to increased inflation, potentially forcing the U.S. Federal Reserve to maintain or raise interest rates.
There are no signs of de-escalation in the conflict between the U.S. and Iran in West Asia. Following the assassination of Iran’s Supreme Leader Ayatollah Ali Khamenei, missile attacks have continued. Israel claimed to have conducted new strikes in Tehran and Beirut on Tuesday. U.S. President Donald Trump stated that the war could last four to five weeks, but may extend longer if necessary.
Experts believe that the long-term trend for precious metals remains strong, but it may be prudent to wait for stability in the market before making new positions.
An expert advised against taking new positions in gold and silver during today’s session, suggesting that it is better to wait for some market stability. According to the expert, support levels for gold on the MCX are between ₹1,59,100 and ₹1,57,700, with resistance levels at ₹1,63,500 to ₹1,65,800. For silver, support levels are indicated between ₹2,57,700 and ₹2,51,500, with resistance levels at ₹2,71,000 to ₹2,78,800.
Disclaimer: This news is sourced directly from the agency, and our team has made no edits.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
